No National Insurance deductions

No National Insurance deductions

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Hi

 

I have just taken over the payroll from another accountant.

I noticed one of the employees (age 59) has been earning £1340 per month but there has been no employers or employee deductions (tax has been deducted) and trying to understand why. Any ideas

Thanks

 

Replies (11)

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By MMSAccounts
27th Sep 2016 23:00

Is the Employee a Director

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Replying to MMSAccounts:
RLI
By lionofludesch
28th Sep 2016 08:31

Or has the director box accidentally been ticked ?

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By Marion Hayes
28th Sep 2016 07:08

What are the coding instructions from HMRC which have come in the handover information?

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Replying to Marion Hayes:
RLI
By lionofludesch
28th Sep 2016 08:38

Coding instructions for NI, Marin ?

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By Jim100
28th Sep 2016 08:51

Sorry he is a director but NI still should apply.

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Replying to Jim100:
JCACE
By jcace
28th Sep 2016 09:37

As a director, his NI will be calculated cumulatively, so he will only suffer deductions once his cumulative pay in the year exceeds £8,060, after which time he will suffer NI deductions at 12% on anything above that amount

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Replying to jcace:
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By Jim100
28th Sep 2016 09:43

jcace wrote:

As a director, his NI will be calculated cumulatively, so he will only suffer deductions once his cumulative pay in the year exceeds £8,060, after which time he will suffer NI deductions at 12% on anything above that amount

Yes actually just realised thanks anyway,

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By craig preece
28th Sep 2016 09:37

Yes NI applies, but for directors it is cumulative (which is why the previous posters asked) no NI until pay reaches the threshold for the year to date. So at £1,340 per month will not kick in until circa month 7.

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By Marion Hayes
28th Sep 2016 15:17

@lion - yes for NI.
If the person has elected to continue to pay NI or it's equivalent in another country as is possible in some of the agreements, payroll operators may not be aware of the personal circumstances but will have received an NT code (for NI purposes only) from HMRC.

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Replying to Marion Hayes:
RLI
By lionofludesch
28th Sep 2016 18:29

Never, ever seen that.

For primary AND secondary contributions?

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Replying to lionofludesch:
By Marion Hayes
29th Sep 2016 21:36

@lion - I believe NT codes take the earnings outside the scope of Nic so apply to both, but in practice have only operated them on non-resident, non-uk duties, so could be wrong. Nothing new there.

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